Answers to End-of-Chapter Questions - chapter 4
1. a.
b.
c.
d.
e.
Less, because your wealth has declined;
more, because its relative expected return has risen;
less, because it has become less liquid relative to bonds;
less, because its expected return ha
Problems Set 4
EF5470: Econometrics, Semester A 2013/2014
Due on Oct. 11. 2013
1. Question 7 on page 46 in Hayashi.
2. Suppose we have derived its part (a), solve parts (b) and (c) of Question 5 on page 74 in
Hayashi. (please be careful about the notation
Problems Set 3
EF5470: Econometrics, Semester A 2013/2014
Due on Oct. 4. 2013
1. Let denote an n 1 vector with all entries equal to 1. Dene P = ( )1 . Let y be an
n 1 vector and dene M = In P .
(a) What are P y and M y?
(b) Use the formula = (X X)1 X y to
Problems Set 1
EF5470: Econometrics, Semester A 2013/2014
Due on Sep. 13. 2012
2
1 0
0.5
1
2
1. Consider two matrices A = 0 1 2 and B = 2 1 2.5 .
2 2 1
0.5 3
1
(a) Compute B , A + B, and T r(A B).
(b) Compute AB and BA. Check ifthey are the same.
3
1 1
13-240 - Spring 2013 l
Problem 1 (40 points)
Consider an economy with a corn producer, some consumers, and a government. In a given year,
the corn producer grows 30 million bushels ot corn and the market price for com is 5$ per bushel.
Of the 30 million b
Lecture Notes in Econometrics
Fred Y Kwan
This version: 7 October 2015
Heteroskedasticity and Autocorrelation
1. Mean, variance and covariance for random vector
Random vector:
x = [ x1
x2 . xk ] '
Mean or expected value: E ( x) = [ E ( x1 ) E ( x2 ) . E (
Multivariable Chain Rule
September 13, 2016
1. The chain rule allows us to differentiate complicated functions. Consider differentiable functions
Rn R
g 1 : X Rn R
g 2 : X Rn R
f :X
.
.
gm : X
Rn R.
By compositing g 1 , . . . , g m , and f , we can make
A Note on Cobb-Douglas Technology
EF5471 & EF8070. Advanced Microeconomics
September 6, 2016
A production function f :
R2+ R+ of the form
f (L, K) = AL K
A, , > 0
(1)
is referred to as Cobb-Douglas production function, and technology representable by a C
About the midterm exam for EF5470 (Econometrics)
1. The midterm exam will be held in October 30 (Sun), 10:00 12:50, LT-17 AC 1.
2. It will be an open-book exam you are free to bring any books, lecture notes, etc., but
electronic devices are not allowed (t
EF5472/EF8072 Advanced Macroeconomics
City University of Hong Kong, Semester A, 2016-17
Instructor: Dr. LUO, Guannan
E-mail: guannluo@cityu.edu.hk
Office Hours: Fridays 2-3:50PM or by appointment Office: AC3 10-282
TA: CHEN, Shan
E-mail: shachen2-c@my.cit
EF5472/EF8072 Advanced Macroeconomics
Semester A, 2016-2017
Problem Set Two
Due Date: Noon, Friday, October 28 (Please Submit your Answers to
Shan AC2 5012, email: shachen2-c@my.cityu.edu.hk)
This problem set has 15 multiple-choice questions and 2 long qu
Problem Set 1
EF5471 & EF8070. Advanced Microeconomics
due September 12, 2016 (in class)
1. (a) The inequality
mincfw_a + b, c + d mincfw_a, c + mincfw_b, d
(1)
holds for any real numbers a, b, c, and d such that a c. To see this, note that
mincfw_a + b,
Problem Set 3
EF5471 & EF8070. Advanced Microeconomics
due September 26, 2016 (in class)
1. Consider a competitive firm with production function
f (L, K) = L + K (L, K)
R2+
where L and K stand for the quantities of labor and capital (hired by the firm) r
Problem Set 2
EF5471 & EF8070. Advanced Microeconomics
due September 19, 2016 (in class)
1. Consider a competitive firm with production function
f (L, K) = L + K (L, K)
R2+
where L and K stand for the quantities of labor and capital (hired by the firm) r
Answers to End-of-Chapter Questions Chapter 2
2. Yes, I should take out the loan, because I will be better off as a result of doing so. My
interest payment will be $4,500 (90% of $5,000), but as a result, I will earn an
additional $10,000, so I will be ah
Answers to End-of-Chapter Questions Chapter 1
1. Because they channel funds from those who do not have a productive use for them to those who do,
thereby resulting in higher economic efficiency.
2. Businesses would cut investment spending because the cost
Answers to End-of-Chapters Questions
4. True, as an approximation. If large changes in a stock price could be predicted, then the optimal
forecast of the stock return would not equal the equilibrium return for that stock. In this case, there
would be unex
Problems Set 5
EF5470: Econometrics, Semester A 2013/2014
Due on Oct. 18. 2013
1. Use the Law of Large Number to answer the following questions.
(a) If X 2 (n), show that X/n p 1 by LLN (hint: use the denition of 2 distribution).
(b) Given that Z 2 (k) an